CAMDEN -- A South Jersey man has pleaded guilty in federal court to operating a $1.8 million investment fraud scheme.

Jeffrey Southard of Pittsgrove entered his plea today to charges of mail fraud and signing a false tax return. The 44-year-old securities broker admitted that he induced clients to purchase bonds that did not actually exist and provided false monthly statements to the investors.

Prosecutors said he used the proceeds for mortgage and car payments, private schooling for his children, vacations and other personal expenses.

Southard has agreed to make full restitution. The charges to which he pleaded carry a maximum penalty of 30 years in prison, but it is likely to be far less under federal sentencing guidelines.